Jeffery Akers, a broker and investment advisor currently registered with Arkadios Capital, is facing a serious allegation of unsuitable recommendation. The complaint, lodged on 9/8/2023, involves a transaction that occurred in 2014 and concerns an investment amount of $25,542.90. The client, who had been with Akers since 2004, contends that the recommendation was inappropriate for his financial situation and goals.
Understanding the Allegation and FINRA Rule
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The allegation against Akers revolves around the concept of suitability, a key principle in the world of investment advising. According to the Financial Industry Regulatory Authority (FINRA) Rule 2111, brokers and advisors are required to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. This rule is based on the information obtained through reasonable diligence to understand the customer’s investment profile. The profile includes factors such as the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, and risk tolerance.
In this case, the client argues that Akers recommended an investment that was not in line with his financial needs and goals. The client, identified as an accredited investor, was reportedly aware that the recommended investment was a long-term, illiquid one. However, the client disputes the suitability of the investment, pointing to a missed liquidity window. Akers has vehemently denied this claim, stating that the liquidity window was only available to shareholders who qualified through death or disability.
The Importance for Investors
This case underscores the critical importance of suitability in investment advising. When an advisor fails to make suitable recommendations, it can result in significant financial losses for the investor. Moreover, it also highlights the role of FINRA in regulating the conduct of brokers and advisors, and its commitment to protecting investors.
It is noteworthy that Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this case. The firm, which boasts over 50 years of experience and an impressive 98% success rate, offers free consultations to potential clients and operates on a “No Recovery, No Fee” policy. Investors can reach out to Haselkorn & Thibaut at 1-800-856-3352.
Red Flags and Recovery of Losses
Investors should remain vigilant for red flags that may indicate financial advisor malpractice. These include frequent trading, unauthorized trades, unsuitable recommendations, and failure to diversify investments. In the event of suspected malpractice, investors should seek legal counsel immediately.
One avenue for recovering losses is through FINRA Arbitration, a dispute resolution process that is quicker and less formal than court litigation. Haselkorn & Thibaut specializes in this area, helping investors recover their losses from investment fraud or advisor malpractice.
For more information on Akers and Arkadios Capital, you can visit the FINRA’s BrokerCheck, which provides the background and conduct of brokers and brokerage firms.
